What does a 10% growth in revenue look like? What does a reduction in costs by 10% mean in terms of profit or working capital? What does an increase of 10% in Customer Lifetime Value (LTV) mean to your financial planning?
Data as an Asset
Data and information are the fuel that powers optimization, innovation, efficiency and enterprise growth. Data and information have always represented value for organisations and nowadays the tools and technologies available are easier than ever to use and relatively low cost for serious organisations.
Know Your Business
Knowledge is power and data is knowledge. The answers to some of your business’s biggest problems can often be found in your data – we call the income generated (or costs saved) from this use of data the ‘Return on Internal Data (ROID)’.
Acknowledging that data has a value as an asset encourages your organisation and your staff to treat it well and maintain it properly. Fortunately, Data is an Appreciative Asset, the more you work on it the greater the value creation becomes.
The start of improvement is knowing where you are today. From this knowledge plans can be made for the future.
Focus on Value Creation
Data value creation can be a daunting task for organisations at the start of their journey – but it doesn’t have to be. Value creation from data can come from the smallest areas to the largest areas of your business.
They can be holistic systems and process based where efficiency gains are shared across the organization. Alternatively, they can be focused on individual functions in the organisation like the sales and marketing function, operations, finance or others.
Here are some examples of how data is used to create value in other customer’s organizations.
Revenue Growth
- CEOs, Boards and Shareholders get fast and reliable business intelligence
- Marketing campaign tracking and optimisation
- Customer behaviour pattern recognition
- Real time reaction to customer behaviours
- Cohort development and behavioural analysis
- Different departments can share information to solve problems faster
- Increases in Lifetime Value of Customer (LTV)
- Responsive pricing models
Risk & Cost Reduction
- Risk & Cost Reduction
- Early warning systems can decrease risks and liability
- Fraud detection and prevention
- Accounts payable can be automated and tracked
- Information management systems can be built to scale up and reduce the growth of HR costs
- Reduction of IT costs
- Reduction in costs of acquisition of customer (CAC)
- Stock control – predictive demand analytics
- Process automation
Where is your organisation today?
A useful place to begin is through an assessment of your organisation’s approach to data across 5 key areas: Structuring, accessibility, veracity, utilisation and policy/culture.
Get in touch with us now to conduct a Data First Audit to understand your organisation’s score today.
